Indian space tech startups secured $126 million funding in 2023, up 7%

India’s space tech sector is set for significant growth, driven by substantial government investment and strategic initiatives.

The recent Union Budget has allocated Rs 1,000 crore to support space technology startups, aiming to boost the sector’s development and attract further investment.

According to Tracxn’s Space Tech Geo Report 2024, India’s growing Space Tech sector witnessed record-breaking funding of $126 million in 2023, a 7% increase from the $118 million raised in 2022 and a 235% increase from $37.6 million in 2021.

The year-to-date funding for 2024 stands at $10.8 million. Despite a global slowdown in funding, the Indian space tech sector has been experiencing an upward trend, driven by substantial government support and significant innovations.

India has emerged as a formidable player in the global space technology arena, with more than 100 space tech startups, the majority of which were founded in the past five years.

Government support has been a critical accelerant for this growth. The Union Budget’s funding of INR 1000 Crore is expected to boost the industry significantly, attracting more entrepreneurship and investment in the coming months.

Currently, India boasts 55 active space assets, including communication, meteorological, and earth observation satellites.

The funding landscape in India’s Space Tech sector is predominantly driven by early-stage investments.

In 2023, early-stage rounds attracted $120 million of the total $126 million raised, reflecting a notable growth from $114 million in 2022. In 2024, early-stage funding has reached $8.5 million to date. Seed-stage funding has also seen a significant rise, growing from $4.3 million in 2022 to $5.3 million in 2023, marking a 24% increase.

Skyroot Aerospace leads as the highest-funded active space tech startup in India, with an overall funding of $99.8 million, followed by Pixxel at $71.7 million and Agnikul at $61.5 million.

The top-funded business models in this space include Small Satellite Launch Vehicles, Satellite Imaging Services, and Satellite Communication Services.

Neha Singh, Co-Founder of Tracxn, commented, “India’s Space Tech sector is growing rapidly, thanks to strong government support and a dynamic startup scene. The significant funding and strategic investments we’re seeing now are setting the stage for India to become a major player in the global space industry. Looking ahead, we expect the sector to attract even more investment, sparking more innovation.”

The privatization of the space sector has catalyzed a multifold increase in activity, with Bangalore leading the list of top-funded cities, followed by Hyderabad and Chennai. India Today